Insurer halts IPO, opts to wait and see

Insurer halts IPO, opts to wait and see

ISTANBUL - Reuters
Insurer halts IPO, opts to wait and see

Güler Sabancı (L) says her Sabancı Group plans IPOs for two leading firms.

Sabancı Holding, Turkey’s second biggest group of companies, yesterday announced it was planning a public offering for its insurance firm, Avivasa, in 2014, instead of the initially planned 2013, after evaluating the new individual pension system’s effects.

Chairperson Güler Sabancı stated during the meeting of Corporate Governance Association of Turkey that they planned to go public for Avivasa - which is one of its three major firms (Teknosa, Avivasa and Enerjisa) – but added that they would analyze the reflections of the new system before taking action.

She said after Sabancı went public for Teknosa it gained its real value, adding that the goal was to maintain public offerings for the other firms.

“After the legislations of the new private pension system are settled we aim to go public for Avivasa in 2014, and after that for Enerjisa,” Sabancı said.

The new private pension system allocates the government match 25 percent of participants’ contribution, in the framework of increasing the government savings ratio. The general anticipation about the new system is to increase the number of participants and achieve sector growth.

Last year the CEO of Sabancı Holding announced that they were preparing to go public for Avivasa in 2013, Enerjisa in 2014 and Diasa in 2015.

Speaking at the same event, Turkey’s largest conglomerate by assets, Koç Holding Chairman Mustafa Koç said Turkey’s economy must grow at least 5 or 6 percent in order to create employment for young population. He stated they must do their part for economic growth as the ones who represent local capital and draw foreign capital.